Committee forwards $150,000 loan recommendation for Cafe Washington redevelopment to City Commission

A Sandusky boards and commissions committee voted to send a staff recommendation for a $150,000 economic development loan to the City Commission for the redevelopment of 207 West Washington Row.

City staff told the committee the project, led by Lori Korapkin and Katie Korapkin doing business as Korapkin Hospitality Group, would convert the former First Federal Savings Bank of Lorraine into Cafe Washington and Market and a Washington Row event venue. City staff said the full project is estimated at nearly $1,750,000, with current submitted costs of about $1,500,000 and financing in place through Savista Bank.

The loan recommendation is for $150,000 at 0% interest, payable at the end of a five-year term and secured by a subordinate mortgage on the property. Under the staff recommendation, the owner may request forgiveness of the loan if the job requirement — six full-time equivalent positions at the end of the term — is met. Colleen, city staff, described the loan as a reimbursement-style instrument and said the city’s funds would be allocated from the 2025 funding pool when the commission approves the commitment.

Staff estimated the project would directly create 10 new jobs, with salaries and wages estimated between $229,000 and $262,000 over years one through three. Annual sales revenue was projected between $1.3 million and $1.9 million over the same period. Staff also projected the market and event venue would attract an additional 20,000 to 25,000 visitors annually and produce an estimated $75,000 to $100,000 in indirect spending for nearby retail, dining and lodging.

Committee members asked about timeline and funding mechanics. Colleen said remediation and demolition were already happening, construction was expected to begin this summer, and the owners aimed for an opening in April or May of the following year. Committee members clarified that because the commission has only approved the current year’s budget, the city should commit 2025 funds now rather than rely on multi-year allocations.

A motion to send the staff recommendation to the City Commission passed on roll call with all members voting in favor. The committee chair said staff planned to submit materials to the city law office immediately and requested that the commission consider the proposal at its next meeting.